New Arena Plan Details Revealed

SACRAMENTO (CBS13) — There are new developments in the plans for a new Sacramento arena – a plan that may include a change of ownership for the building.

CBS 13 has learned that under the plan, the Maloofs would be just the tenants, while the arena itself would have new owners and operators.

A surcharge on sporting events and concerts could be just the ticket to help fund a new arena – along with higher hotel fees for overnight visitors – plus additional rental car costs for travelers in the Sacramento region. Those three options could help finance the $387 million needed for a downtown arena – a venue that promoters say will provide an economic shot in the arm.

Chris Lehane, executive director for Think Big Sacramento told CBS 13 the new arena “will create 4,000 jobs, $7 billion in revenue over the 30 year period for the facility.”

Under the plan, the new arena would be owned by the city of Sacramento – and operated by a private company. The Maloofs would maintain control of the Kings, but the team would be a tenant in the new building – just like the Lakers are at the Staples Center in Los Angeles.

Sacramento could generate additional revenue by selling city owned land to commercial developers – but do the numbers pencil out?

Sanjay Varshney, the dean of the College of Business Administration at Sacramento State University, told CBS 13 that having users pay up front fees is a viable plan.

“In many other cities, a similar plan has worked. And for Sacramento, I think this is truly a test for Sacramento,” Varshney said.

In the meantime, promoters have just 21 days to finalize the plan. The Maloofs had no specific comments today – but they will very likely have plenty to say about the final plan when it’s unveiled September 8th – at the Sacramento Press Club.

  • kings fan

    sounds very promising. making the fans basically fund the arena for the team and a boost to the economy, yes please!

  • Whitey

    NNNNOOOO!!!! Please don’t build the new facility… I much prefer living in the dark ages.

  • Monarch Fan

    As a former Monarch fan, I hope Sacramento can bring back another Women’s National Basketball Team if a new arena is built. The Monarchs won a National Championship and had a large fan base here. What have the Kings done lately?

    Also, I hope the Maloofs or private investors can come up with funds to renovate the Power Balance into a premiere acoustic venue. Last night, Sade sold over 10,000 tickets. The entire arena could have sold out if the acoustics were state of the art and not arena grade. Live tours can generate more income than sporting events if class act performers are booked and the ticket price is reasonable. Concert goers from Northern California would pour into the city to hear top notch performers in a state of the art music pavilion.

  • Wayne

    I will not question the amount of money and jobs the report says a new arena will bring in, I just wonder if it is the best use of limited resources. I have not seen any reports that say we can or can not bring in the same amount of money and jobs by doing something that costs less. Untill that happens I must question the use of limited governemnt resources.

  • mbee

    What is promising about these thieves stealing money that could otherwise fund, parks, fire department police, and all the other city services being cut. What these jerks are doing is dumping their costs on the taxpayers. If you love the Kings, fine, than pay for it yourself. Having concert, rental car, hotel rooms, and theatre events pay for this arena is just thieft. This arean is a black hole for Sacramento, no arena in the USA pays for itself much less brings in net revenue to the area it is in. How do I know this? If could pay for itself and make money you would have venture capital people shoveling money, no venture capital money, that all the “good things about the arena helping the city” are all lies.

  • mbee

    Wayne, what they could do is what every city that prospers does, bring in manufacturing jobs. All the retail and health service industires favored don’t bring in new money they just shove it from one pocket to another. The people we elect are total idiots. The county took ten years to approve a gravel plant and mining operation and the bigwigs all patted themselves on the back and side how good they were. They forgot the millions in lost tax revenue, tens of millions in lost wages and thousands of Sacrament people out of work. those costs just don’t register with them.

  • Sweettt

    If I were a fan, I wouldn’t help them fund this arena, come on now! What about the players, they make enough to help pay for it…seriously!!!

  • Dougie

    So the plan is to make Sacramento less attractive to tourists & conventions by raising hotel taxes & rental car fees, and the city selling off property (in a very very down real estate market)? Those are the bad parts, and it would be nice to know exactly what city-owned property would be sold. And if the city has surplus property to sell in a very down real estate market, is this the best use of the proceeds? The good part is the surcharge on users of the arena. Without actual numbers (or at least percentages), it’s impossible to form an opinion.

  • Randy Gudgel

    @Sweettt – Do you pay to work at your job? The players may have a lot of money, but what you are saying is that they should pay to work, rather than work to get paid.

  • bill

    Great! But what about parking? You can’t build a new arena without parking. If they don’t solve this problem then I don’t no how anyone will be able to attend games and other events. I believe in the downtown market but come on get real and add a parking structure some where and not rely on parking on the streets.

blog comments powered by Disqus
The Taz Show
LIVE: Monday through Friday from 6am – 6pm ET

Listen Live